Microsoft SWOT Analysis Matrix (2021)

Founded in 1975 in New Mexico, the mission of Microsoft’s founder, Bill Gates, was to situated personal computers in every residence by making technology cost-effective and user-friendly. These manipulates turned Microsoft into one of the world’s biggest corporations and elevated Bill Gates to the wealthiest individual on the planet.

We dive into the internal fortes and weaknesses of the technology monstrous, as well as the external opportunities and menaces that impact the company.


1. Microsoft is the biggest technology company in the world. The first companionship to reach a market capitalisation of $500 billion in 1999, Microsoft has harboured its own position in the top 10 biggest organizations in the world throughout its lifetime. Its grocery reach has ensured that the Windows Operation System was a household feature during the technology boom of the 1980 s and 1990 s. Due to its width, Microsoft often prescribes the direction of the industry, therefore reaffirming its position going forward.

Microsoft maintains 76.56% of the world-wide operating system market.( Statista)

2. Microsoft has one of the largest market-reach out of any technology firm. As the Windows Operation System is the go-to platform for over 70% of the operating system market, Microsoft once has access to an incredible customer base. This penetration offers Microsoft the ability to sell its products and services to its existing client base. Furthermore, its existing client base knows that these products can be fully integrated into its current setup.

More than 1 billion designs run on Microsoft’s flagship software, Windows 10.( Microsoft)

3. Microsoft’s environmental policies are world-leading. Microsoft has installed responsible environmental practices in the continuing operation for several years, hemming eco-friendly policies into its fabric for years to come. As customers has been increasingly intentional about their environmental impact, Microsoft offers a responsible option for the market’s technological needs. Furthermore, government policies and regulations are locating increasing stres on the private sector to curtail its impact on the environment. Regarding this matter, Microsoft is ahead of the game.

Microsoft has operated at a carbon impartiality statu of 100% since 2012.( Microsoft)

4. Microsoft has one of the largest market capitalization rates. Microsoft has a market capital of approximately$ 2 trillion, impelling it the second most valuable company after Apple. Its recent increment is due to a change in consumer behavior to a more tech-focused subsistence with decentralized workspaces.

These daytimes, consumers can work from anywhere in the world thanks to an online reality supported by online technological infrastructure. As corporations have facilitated decentralized workspaces, Microsoft developed makes to service that demand.

Microsoft has a market capitalization of $1.359 trillion.( Statista)

5. Microsoft diversified its suite of concoctions across a broad range of sell segments. With the prevalence of the Windows operating system, Microsoft has a large section of the technological marketplace easily available to it. The company has leveraged its own position in its wide range of commodities. Microsoft is present in most segments of the technological nature, being one of the largest participates in the gaming sector, cybersecurity, productivity software, as well as cloud compute , amongst other. This is reinforced by its flagship software, the Windows Operating System.

Microsoft has 16.9% of the Infrastructure As A Service( IAAS) business market share.( Attempting Alpha)

6. Microsoft has an incredible brand value, helped by its historic first-mover advantage in many sectors that are now well established. The change that took place in to decentralized workspaces increased the brand price of Microsoft and helped it to excel its contestants. Microsoft’s productivity software, as well as collaborative conferencing application, Teams, passed Microsoft an side over its closest contender, Google, which derives most of its income in advertise spend.

The brand value of Microsoft had a year-on-year swelling of 30 %, achieve $326.5 billion.( Statista)


1. Cybersecurity continues to impact Microsoft’s operations. Resilience in the modern senility of an online cosmo means that cybersecurity is essential to maintain trust in technology. Threats from cybersecurity are becoming more and more advanced, with performers developing beyond private individuals and ill-intentioned radicals, to authorities deploying confidential tactics in their bids to influence the sovereignty of other nations. Microsoft has suffered various cyberattacks on its software, leading to the perception that its security peculiarities are not as strong as its competitors.

Every day, Microsoft processes over 6.5 trillion signals in order to detect appearances of breaches in cybersecurity.( Microsoft)

2. Microsoft has a large reliance on the personal computer market. As its flagship application is primarily used on personal computers( PCs) put forward by third-party produces, the market for PCs has a large impact on the sales revenues of Microsoft. The diversification of Microsoft’s products and services occurs once its flagship software has been adopted by the consumer. The resulting impression is that Microsoft is largely impacted by the forces that impact the PC market. Microsoft can strengthen its position by further diversifying beyond its flagship software.

The PC market be increased by 11%.( Blue Box Media Private Limited)

3. The continued strive of Internet Explorer jolts the Microsoft brand. Microsoft’s Internet Explorer has been dubbed” the best browser to download better browsers, like Google’s Chrome, or Mozilla’s Firefox .” Microsoft’s Internet Explorer has had a long, drawn-out decline from its entry into force in 1995 where reference is took over as the leading internet platform. The discernible reaction of a lack of innovation, Microsoft resolved support for the application in 2021, finishing off a 26 -year lifespan of its primary internet browser.

Microsoft’s Internet Explorer formerly regarded a 90% the shares, but declined to the point that Microsoft discontinued expressed support for the scaffold in 2021.( Mind Matters)

4. Many massive buys of companionships with little residual appraise have harmed Microsoft’s balance sheet. Microsoft has an unfortunate history of acquiring market-leading business in up-and-coming industries, and subsequently not doing anything with them. A noticeable client of this is Microsoft’s purchase of Nokia, which, after a series of ministerial the questions and gaffes, resulted in Microsoft writing off nearly all of the $7.2 billion it paid for the mobile handset producer. This situation has replicated itself in several of Microsoft’s mergers and acquisitions, with the major contributor to failure identified as culture mismanagement.

Microsoft acquired Skype for $8.5 billion in 2011, and Nokia for $7.2 billion in 2014.( Hustle Con Media, Inc .)

5. Microsoft’s core marketplaces are over-saturated. With 70% of the Operating system and a large portion of the productivity software market under its belt, Microsoft’s options for growth are increasingly hard to identify and achieve. Coupled with its slow uptake in innovation and a reliance on its existing marketplace, Microsoft’s grocery situation has some frailties. To strengthen its position, further education and innovation of Microsoft’s products and services will go far.

Microsoft’s share of the productivity software market is 41.6%.( Statista)

6. Microsoft does not produce its equipment. By not controlling the supply order of Microsoft’s main hardware and devices, it exposes itself to supply chain collapses and constraints, as well as market obliges in these industries. Furthermore, Microsoft renders controlling software for hardware that is produced by third parties. Microsoft is well-positioned to design hardware that marries its software perfectly, creating a more harmonious ecosystem for the rest of its products and services. This status of implementation well by its challengers, such as Apple.

PC shipments descended 10% due to supply chain limitations.( CNBC)


1. Consumers who run legacy application will inform to newer software. Through the process of developing competitive ascents to its existing application collections, Microsoft has access to an improbably great market of loyal customers who need to sporadically improve their software to ensure cross-compliance with other employments, as well as replace outdated equipment or software to ensure continued usefulness. These grocery dynamics augur well for Microsoft’s sales.

In 2020, 8.5% of Microsoft’s users “re still” applying Windows 7.( SlashGear)

2. Microsoft could intensify its research and development endeavours. As already mentioned, research and development of inventive engineerings increase the chance of consumers choosing a technology offering over that of a adversary, as well as initiates an refurbish of existing software. Although expensive engineering that becomes outdated quickly because of technological advancements is not good for the honour of a company, a company will still need to ensure that gift software is somewhat compatible with replacement software as and when it becomes available.

Microsoft spent $19.3 billion on research and development.( Statista)

3. Strategic collaborations and buys can offer Microsoft incomes in diversified spheres. As the rate of change in the consumer technology and software industries increase, it becomes increasingly difficult for large corporations to keep on top of development and innovation. A tactical approaching could be to collaborate, incorporate or acquire companionships that testify strong busines potential in babe industries that evidence positive increment alternatives. Microsoft has gained a lot of experience in this strategic approach and has certainly learned how it can go wrong, with consolidations such as Nokia.

Microsoft purchased Nuance for $19.7 billion and LinkedIn for $26 billion.( VentureBeat)

4. The wearables and smartphone industries are both specified for enormous expansion. Although Microsoft’s entering into the wearables grocery with the Microsoft Band( a wrist-based fitness device) objective when it announced that it would no longer support the platform, the patents that Microsoft is issuing are pointing toward a resurgence. The marketplace has incredible possible, especially considers the medical and policy applications that these devices are now offering. As the world becomes interconnected and customers involve engineering that has more seamless integration, wearables proposal incredible opportunities.

The global wearables sell length is expected to grow by 15.51% year-on-year between 2020 and 2027.( GlobeNewswire)

5. Microsoft can make its hardware. Microsoft can take control of the provision of its hardware, as well as produce the hardware that operates its application. In pursuit of this, it can significantly shorten its ply chain, as well as increase the resilience of its logistical capabilities. Furthermore, it can offer inventive technological provides that better mix the hardware and software interface of its flagship stages. This “ve brought” Microsoft in line with the approach of its major competitors.

Microsoft’s main chipping supplier, Intel, affixed total revenues of $9.85 billion from its activities related to selling PC chips.( CNBC)

6. The cybersecurity area is growing at a rapid proportion. The world threat of cyber-attacks on souls, corporations and the government is a lot more real these days than it was a decade ago. Private participates are using cybercrime to erode foreign authorities, and governments themselves are using cybercrime as a tactic to undermine the sovereignty of rival nations. Microsoft is favorably positioned to leverage its existing market attendance to develop makes to mitigate the increasing risk of cyber-attacks on the various manufactures/ spheres that are being targeted.

Microsoft bought CyberX for $165 million.( The Motley Fool)


1. Competitive obliges will continue to threaten Microsoft’s market position. Microsoft was once the go-to company for most things software-related. Many of its market-leading offerings have lost market share due to competition and a lack of innovation. One major instance of this is Microsoft’s Internet Explorer, formerly having 90% of the internet browser market, which is now dominated by Google’s Chrome.

Other areas of Microsoft’s business are increasingly impacted by that of its contestants, such as Google’s Sheet, Docs, and Slides taking market share from Microsoft’s Excel, Word, and PowerPoint, respectively.

The office software market volume is $26.5 billion.( Statista)

2. Piracy erodes Microsoft’s profitability. Microsoft’s software is generally priced at a premium compared to its opponents. Furthermore, most computers require an operating system to operate. Microsoft’s functional mechanism of native hardware installed on a design, instead of cloud-based infrastructure, meant that Microsoft’s software will have a higher likelihood of being illegally controlled, especially in emerging economies. This represents a significant portion of the global market for operating systems.

The overall frequency of infringement in Microsoft products in the Middle East and Africa is 56 %.( ITWeb Limited)

3. Privacy and security issues over Microsoft’s flagship software packages raise concern for its purchasers. Targeted Advertising, Diagnostic Feedback, Location Tracking, use of the Camera and Microphone, and Activity History are all features of Windows 10 that have come under scrutiny in recent years for the violation of the privacy and security of Microsoft’s buyers. Furthermore, Microsoft earmarked the National Security Agency to intentionally circumvent insurance aspects that come standard with Microsoft’s products.

250 million customer records were explained in a data breach of Microsoft.( Forbes)

4. Discrimination in Microsoft’s employment makeup and corporate environment affect its workforce. Microsoft’s employees are mostly white workers, which had given rise to charges that Microsoft discriminates in its hiring handles. Furthermore, allegations have surfaced of a significant wage gap present in the restitution of males compared to their female copies. Lastly, Microsoft is accused of sexual injustice toward its existing staff members.

Microsoft’s workforce is 60% white and 75% male.( Vox Media, LLC)

5. Large antitrust litigations have had an impact on Microsoft since the 1980 s. Allegation of monopolistic penchants are a staple in Microsoft’s legal duels, with a major occasion in the 1980 s, the United Commonwealth vs. Microsoft Corporation, where Microsoft sat restrictions on the ability of PC manufacturers to install software other than Microsoft’s offerings on the machines that it made. These charges have continued to surface, involving Microsoft consuming its position as a market leader in non-competitive ways.

A $ 375 million antitrust suit has been bought against Microsoft.( Incisive Business Media( IP) Limited)

6. Disruption in the technology industry sternly impacts firms that do not innovate. While corporations that implement strong invention tricks in their operations sustain less from the impact of a reforming busines terrain, those that do not innovate and conversion with the times can be swiftly and severely impacted by a change in consumer behavior and uptake structures. Alters in the way companies operate and individuals interact in their professional lifetimes have represented a major disruption in countless industries. Organizations need to ensure a agile approach to innovation to mitigate the impact of this risk.

73 % of employees requirement adaptable, remote act.( Microsoft)

Having such a large market share in a fickle, dynamic busines as consumer engineering, Microsoft’s arrangement allows it to carve the path of the industry. Whether or not Microsoft leveragings its position to innovate and prescribe the industry path or not is yet to be seen. Many large firms that had already been seen as” too big to flunk” have disappeared due to the lack of their ability to change with the times.

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